Leasing is a form of long-term rental where we, as the lessor, own the equipment during the contract period while you, as the customer and lessee, have full right of use. When the contract period runs out, you as the customer have committed to buying out the equipment at the predetermined residual value. Usually the term is 12, 24 or 36 months and the final residual value is 10 per cent of the amount financed. The leasing fee is easy to budget as it is usually the same for the entire duration of the contract and can be adjusted to the income. You deduct the leasing fee as an operating expense and it is not charged to your balance sheet.

Leasing is a way for your business to spread the cost over time. It is not charged to your balance sheet as you deduct it as an operating expense in your accounts. The leasing fee is easy to budget and to align with revenue. You don't use your company's capital and, through a lease, you can acquire the equipment and peripherals you need for your business without using your cash.